Do I Qulaify under the new housing bill?

Question

I am upside down on my loan (492K vs. 392K). I am also behind on first mortage (have made re-payment arrangements). I have a 80-90% DTI and I can't get anyone to refi me. If I can lower the value of my home (85% per new housing bill) to 349000 and get FHA funding I can get back on top. Is there anyone out there that might be able to help with refi?

Answer 1

No, you are in big trouble.  You would have to get your lender to agree to take much, much less than you owe.  Then you'd have to convince someone else to give you a loan for with a whacked out DTI.  

Anyone 'helping you out' should expect to get hosed and hold the bag when you can't repay that.  

good luck!

Answer 2

That depends... because you would have to reapply through FHA you would be requried to resubmit all your documentation such as income, employment history, etc.  As long as those check out I would try going directly to your local bank (so you don't get scammed by a broker).  Keep in mind if you go with FHA you would need to give them 100% of profits after the first year, 90% the 2nd year, and so on until it bottoms out at 50%.  Another option would be a loan modification.  Many lenders can and WILL remodify your loan just so they have the peace of mind that they have a performing loan.  If you are doing a loan modification don't pay more than $500.00 and see if they have an attorney based product meaning attorneys will be handling the negotiations.

Answer 3

Your DTI is to high to get the relive from the new housing bills. It will help some homeowners, but they need to qualify for the new mortgage. Your best solution is to try with your lender modify your loan. Use professional loan modification company with the attorneys- they will tell you more base on the lender you have your mortgage with and your financial situation what is possible for you to do .